suppose you invest $2000 at a 5% annual interest rate. calculate the amount you would have after 7 years: a) daily b) monthly c) continuously
Mathematics · High School · Mon Jan 18 2021
Answered on
Given:
Principal amount ( P ) = 2000
interest rate ( r ) = 5% or 0.05
Term ( t ) = 7
Formula for the future value of simple interest:
A = P ( 1 + rt)
Solution:
Substitute the given values of P, r and t to the formula for the future value of simple interest.
A = 2000 ( 1 + (0.05)(7))
A = 2000 ( 1 + 0.35)
A = 2000 ( 1.35)
A = 2700
Final answer:
The future value will be 2700